Net Worth Calculator

Calculate your net worth with this detailed calculator that will help you figure out how much you own and how much you owe.

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What is a Net Worth Calculator?

Your net worth is a number that is based on the value of the assets you own outright, like your investments or a mortgage-free house, versus the value of liabilities you owe, like debts. A net worth calculator is an excellent way for you to calculate your own net worth. Essentially, your net worth is calculated by subtracting your total liabilities from your total assets.

The Hardbacon Net Worth Calculator can be used for a variety of purposes. Some of them are:

  • Understanding which assets and liabilities can be included in the calculation of your net worth.
  • Adding up all your cash and other assets, investments, and high value personal belongings to come up with your total assets, then subtracting your total liabilities to find your actual net worth.
  • Getting a big picture of your overall financial health, taking both what you own and what you owe into consideration.

How to use the Hardbacon Net Worth Calculator?

Hardbacon’s net worth calculator is very easy to use. You simply need to input the numbers, and we calculate your net worth for you. The numbers that you need to calculate your net worth include:

  • Cash and equivalent assets in chequing and savings accounts and other cash assets
  • Investment assets such as value of your RRSP, TFSA, RESP, non-registered investments , and other investments accounts
  • Personal assets, including the value of your principal residence and car
  • Total liabilities such as credit card debt, car loans, mortgage, and other liabilities

Understanding the results of the Net Worth Calculator

After entering the value of different assets you own and different liabilities you owe, the Hardbacon Net Worth Calculator adds up all the liabilities and subtracts them from your total assets to calculate your personal net worth. Your net worth says a lot about your financial wellbeing. The higher your net worth the more financially secure you are. The lower your net worth, the less financially secure you are. 

The final number can either be positive, negative or zero. A positive net worth number implies that your assets exceed your liabilities, and you are on the path of building wealth. A higher positive number is definitely better than a lower positive number, meaning you have ample assets to offset your liabilities. That means if you were to fall on hard times, you have enough assets to cash in or sell in order to satisfy your debt obligations and other liabilities. 

On the other hand, a negative net worth number,  a deficit net worth, indicates that your liabilities outweigh your assets. It indicates that you owe more than you own and indicates a weak, or high risk financial situation. However, negative net worth does not imply bankruptcy as the value of assets is volatile and can go up in the near future to outnumber the total liabilities. It is not uncommon  for younger people just starting out, or newcomers, to have a lower or negative net worth. Your net worth is an important indicator but it is only a piece of your bigger financial picture. 

Learn more about the Net Worth Calculator inputs

The assets and liabilities to be included in the personal net worth calculation are cash and equivalent assets, investment assets, personal assets, and personal liabilities. Below is a description of these assets and liabilities to assist you in finding the right numbers to enter  into the Hardbacon Net Worth Calculator.

Cash and Equivalent Assets: This category of assets includes the most liquid form of assets such as cash in your chequing and savings accounts. It also includes other assets that can be quickly converted into cash, typically within three months. Cash equivalent assets refer to financial products such as high interest savings accounts (HISA), Guaranteed Investment Certificates (GICs), as well as treasury bills and other short-term government bonds, as long as they mature in less than a year. So, if you add up all the cash you have in your bank accounts and other liquid cash equivalent assets, you enter their total value in the cash and equivalent assets category.

Investment Assets: Investment assets are the financial instruments you buy and sell to accumulate wealth or generate additional income. The investments can either be in bonds, stocks, shares, Exchange Traded Funds (ETFs), property, or fixed-income assets. The Hardbacon Net Worth Calculator has separated these investment assets into different categories to make it easier for you to calculate your net worth properly. 

RRSP Investments: RRSP investments refer to investments in a Registered Retirement Savings Plan. The plan allows employees and self-employed individuals in Canada to save and invest their pre-tax money for their retirement years. The investments in an RRSP plan grow tax-free until it’s time to withdraw them, typically after you stop working. They should be included in your personal net worth calculation. 

Non-Registered Investments: Additionally, investments in non-registered accounts are also a part of your investment assets. Non-registered accounts are not registered with the federal government of Canada; which simply means they are subject to investment related taxes, but with no contribution limits. However, such investments are flexible and can still offer other tax advantages.

TFSA: Investment assets considered for the calculation of personal net worth also include investments in tax-free savings accounts (TFSA). TFSA investments can include securities, mutual funds, bonds, and cash. Investment income earned within a TFSA is  tax-free, and the annual contribution limit is CAD 6,000 per year. Since the capital gains on investments through TFSAs are tax-free, it helps you save money and accumulate wealth faster than a traditional savings account. 

RESP Investments: RESP investments refer to investments made in a Registered Education Savings Plans. The RESP plan is sponsored by the federal government of Canada and encourages people to save for their children’s post secondary education. The contributions made to an RESP are returned tax-free on withdrawal, while earnings from the plan are taxed.

Personal Investments: The calculation of total assets also incorporates personal assets. Your personal assets can include the value of your home as long as it is your principal residence, as well as the value of your car. The other assets that can be added to personal investments are art collections, antiques, electronics, and other valuable personal items. The Hardbacon Net Worth Calculator adds together the numbers you enter under cash and equivalent assets, your other investment assets, and all personal assets. The sum total is the value of all your assets combined. 

Liabilities: The other critical component of your personal net are your total liabilities. Liabilities can include things like the mortgage you owe on your primary residence, car loan, credit card debt, line of credit, and other personal liabilities. Other personal liabilities can include student loans, secured or insecure, personal loans, etc. The Hardbacon Net Worth Calculator categorizes the common types of liabilities, so you know where to plug in the numbers for an accurate calculation. Total liabilities are then subtracted from total assets to calculate your personal net worth.

About Net Worth

Net worth is a critical parameter to understand where you stand financially. It indicates your financial position in terms of where you are, where you are heading, what is right, and what is not right. While positive net worth is a good news and negative net worth is disconcerting, net worth is volatile and can swing either way in a short period of time. It is, therefore, suggested to spend wisely, keep the liabilities and debts in control, and invest wisely to keep the net worth and financial position satisfactory.

Frequently Asked Questions

  • How to calculate my personal net worth?

    Your personal net worth is the difference between your total assets and total liabilities. The assets to be included in total assets are cash and cash equivalent assets, investment assets, and other personal assets, like cars and houses. On the other hand, personal liabilities comprise your personal credit card balances, car loans, student loans, mortgage, and other liabilities. In essence, personal net worth is the difference between what you own and what you owe. If your personal assets exceed your personal liabilities, you have a positive net worth, while if your liabilities outweigh your assets, your personal net worth is negative.

  • How can I calculate my net worth as a married person?

    It is important to note that the net worth of spouses is not necessarily identical. If all the assets, including the primary residence, cars, and other investment assets, are co-owned and all the liabilities are shared, the total household net worth or couple net worth can be equally distributed between the partners. However, if the assets and liabilities are unequally shared, your net worth as a married person is calculated irrespective of your partner’s net worth. Your total liabilities comprising of your share of the couple liabilities are subtracted from your share of total assets to calculate your net worth as a married person.

  • What are the assets you can include in your net worth?

    You can include all your personal assets in calculating your personal net worth. These assets cover cash in bank accounts, cash equivalents that can be readily converted to cash, and other personal assets like the car and the primary place of residence. Additionally, all the personal investment assets can also be included in your net worth. The investments that are considered as assets for the calculation of net worth include investments in registered retirement savings plans, registered education savings plans, tax-free savings accounts, and non-registered investments. The combination of all these personal assets forms total assets for the calculation of your personal net worth.

  • What is the formula for calculating net worth?

    The formula for calculating net worth is Total Assets-Total Liabilities. Essentially, all the liabilities are added up and subtracted from total assets to find out the net worth of a person. The assets include cash and cash equivalent assets, investment assets, and personal assets and exclude income, while liabilities include personal liabilities, like student loans, car loans, and credit card balances. So, if your total assets are CAD 60,000 and your total liabilities are CAD 20,000, your net worth is calculated as CAD 60,000- CAD 20,000 = CAD 40,000. A positive net worth indicates a stable financial position wherein you own more than you owe; however, negative net worth is concerning as you owe more than you own.

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